Monday, January 10, 2011

Seashell Napkin Rings

FIAT: LETTER OF THE COMPANY 46

The Fiat-Fiom conflict erupted in late 2010 on the project for the Mirafiori plant in Turin - which follows a similar story for the establishment of Pomigliano d'Arco - is important for the economic and social future of the country. Newspapers and television have the Fiat version, supported by the government, so with the increasing international competition in the auto market, workers must accept poorer working conditions, the loss of certain rights, to the inability to choose their own representatives in a democratic union.

Let's see the facts. In 2009, Fiat produced 650,000 cars in Italy, just one third of that achieved in 1990, the quantities produced in most European countries have grown or remained stable. Fiat spent on productive investment and for research and development revenue share significantly lower than those of its main European competitors, and is very active in the field of sources of propulsion low environmental impact. Unlike what happened between 2004 and 2008 - when the company has recovered from a crisis that seemed fatal - in recent years, Fiat has introduced new models. The result was a market share in Europe declined 6.7%, the highest fall recorded in the continent in 2010.

At the same time, however, in the third quarter of 2010, the Fiat leads the profitability for shareholders, with a return on equity of 33%. The recent split between Fiat Auto and Fiat Industrial interest in acquiring a majority stake in Chrysler reported that the priorities Fiat are increasingly oriented towards the financial dimension, which could be sacrificed in future car production in Italy and the same properties of plants.

Despite the rhetoric of the ability to "stay on the market on their own feet," it must be remembered that the Fiat has pursued this strategy to obtain for various reasons, including the late eighties and early two thousand, grants from the Italian government estimated at 500 million euro a year.

To make the cost of this management were mostly workers. Over the past ten years, employment in Fiat cars worldwide fell from 74 thousand to 54 thousand employees, of which only 22 thousand workers in Italian factories. Fiat workers' qualifications are generally lower than those of competitors, average wages are among the lowest in Europe, and the distance from the pay of top executives has never been higher: Sergio Marchionne earning over 250 times the salary of a worker.

These data should be the focus of debate on the future of Fiat. The agreement with Fiat by Fim, and Uilm Fimsic to Mirafiori - Fiom that refused to sign - provides a vague business plan, not credible on production levels, the hours would be unlikely any assessment of productivity. The agreement appears to be inadequate to bid and qualify the production, and low costs on the deteriorating conditions of workers. In terms of industrial relations are particularly serious in the contents of the agreement: The agreement comes as the replacement of national labor contract, and dispel the Fiom by the presence in the company and its role in representing workers who have freely joined.

The referendum of January 13 to 14 among the employees on the agreement by threatening to cancel Fiat investment in the case being dismissed, places the workers in the face with an impossible choice between rights and labor. In this perspective, the strategy appears to be the Fiat management curtailed production in Italy, unloading costs and risks imposed on workers and an industrial relations model inspired by the worst aspects of the American.
There are alternatives to a strategy of this kind.

In Europe, the crisis has been addressed by companies such as Volkswagen with labor agreements that have reduced the time, limited the loss of income and protected production capacity and employment in this way production is now recovering with the application. Produce cars in Europe is possible if there is a strong commitment to research and development, innovation and investment attention to environmental sustainability, this requires workers with more skills, less job security and fair wages, work organization bargained with the unions ensuring high quality, flexibility of production and integration of functions. E 'need an industrial policy by the government that is not limited to incentives for car wrecks, but define the direction of innovation and investment toward sustainable production and quality, and the conditions for more efficient markets; integration with the research policies, labor demand. Given the overcapacity in the car in Europe, it is desirable that these policies are defined in a European context, avoiding downward competition on costs and working conditions. On all these issues need a confrontation, negotiation and agreement with unions representing employees of the company.

In no country in the European automotive industry has attempted to eliminate a critical review of corporate strategy from the possibility of negotiating the working conditions and to represent workers. The agreement Fiat Mirafiori reduces the space of freedom and democracy, opening up a fight that would set back the economy and the country.

We hope that Fiat renounces a road that would bring economic performance, but an escalation of social conflicts. We hope that government and politicians and trade unions contribute to a solution of this conflict which restores the rights of workers to be represented in a democratic manner and protect the working conditions. We express our solidarity with the workers involved and the Fiom, we support the national strike of 28 January 2011 and we try to open a debate on the future of industry, labor and democracy the workplace and in Italian society.

Margherita Balconi, University of Pavia,
Paolo Bosi, University of Modena and Reggio Emilia,
Gian Paolo Caselli, University of Modena and Reggio Emilia,
Daniele Checchi, University of Milan,
Thomas Ciarlo, Max Planck Institute of Economics,
Vincenzo Comito, University of Urbino,
Marcella Corsi, University of Rome "La Sapienza",
Pasquale De Muro, University of Rome Three
Giovanni Dosi, Scuola Superiore Sant'Anna, Pisa,
Marco Failla, University of Trento,
Paolo Figini, University of Bologna,
Massimo Florio University of Milan,
Maurizio Franzini, University of Rome "La Sapienza",
Fubini Lia, University of Turin,
Andrea Fumagalli, University of Pavia,
Gallegati Mauro, Università Politecnica delle Marche,
Adriano Giannola, University of Naples Federico II,
Anna Giunta University of Roma Tre,
Andrea Ginzburg, University of Modena and Reggio Emilia,
Gnesutta Claudio, University of Rome "La Sapienza",
Granaglia Elena, University of Roma Tre,
Simona Iammarino, London School of Economics,
Peter Kammerer, University of Urbino,
Paul Leon, University of Roma Tre,
Stefano Lucarelli, University of Bergamo,
Luigi Marengo, Scuola Superiore Sant'Anna, Pisa,
Pietro Masina, University of Naples "L ' Eastern Europe ",
Massimiliano Mazzanti University of Ferrara,
Marco Mazzoli, Catholic University of Piacenza,
Domenico Mario Nuti, University of Rome " La Sapienza, "
Paolo Palazzi, University of Rome" La Sapienza ",
Cosimo Perrotta, University of Salento,
Mario Pianta, University of Urbino,
Paolo Pini University of Ferrara,
Felice Roberto Pizzuti, University of Rome "La Sapienza",
Andrea Ricci, University of Urbino,
Roventini Andrea, University of Verona,
Maria Savona, University of Sussex,
Francesco Scacchi, University of Turin,
Sterlacchini Alessandro, Università Politecnica delle Marche,
Stefano Sylos Labini, Enea,
Tattara Joseph, University of Venice,
Vaona Andrea, University of Verona,
Marco Vivarelli, University Catholic University of Piacenza,
Antonello Zanfei, University of Urbinom,
Adelino Zanini, Università Politecnica delle Marche

From site MICROMEGA

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